H&E Equipment Services Reports Second Quarter 2012 Results

Forward-Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs and expectations are forward-looking statements. Statements containing the words "may”, "could”, "would”, "should”, "believe”, "expect”, "anticipate”, "plan”, "estimate”, "target”, "project”, "intend" and similar expressions constitute forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in any forward-looking statement. Such factors include, but are not limited to, the following: (1) general economic conditions and construction and industrial activity in the markets where we operate in North America as well as the depth and duration of the macroeconomic downturn related to decreases in construction and industrial activities, and the impact of conditions of the global credit markets and their effect on construction spending activity and the economy in general; (2) relationships with equipment suppliers; (3) increased maintenance and repair costs as we age our fleet and decreases in our equipments’ residual value; (4) our indebtedness; (5) the risks associated with the expansion of our business; (6) our possible inability to effectively integrate any businesses we acquire; (7) competitive pressures; (8) compliance with laws and regulations, including those relating to environmental matters and corporate governance matters; and (9) other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date of this release.

H&E EQUIPMENT SERVICES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (Amounts in thousands, except per share amounts)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
			2012				2011				2012				2011
Revenues:
Equipment rentals			$	70,504			$	55,772			$	130,133			$	104,250
New equipment sales				64,704				57,913				105,701				87,086
Used equipment sales				23,588				23,066				50,110				38,483
Parts sales				24,725				24,942				48,103				46,519
Service revenues				13,879				13,244				27,179				25,881
Other				11,624				9,398				21,463				17,024
Total revenues				209,024				184,335				382,689				319,243
Cost of revenues:
Rental depreciation				24,763				21,507				47,577				42,070
Rental expense				12,253				11,569				23,796				22,308
New equipment sales				57,633				51,118				93,578				77,148
Used equipment sales				16,405				18,058				35,027				29,620
Parts sales				17,805				18,261				34,734				34,101
Service revenues				5,168				5,137				10,292				10,048
Other				10,762				10,890				20,799				21,037
Total cost of revenues				144,789				136,540				265,803				236,332
Gross profit				64,235				47,795				116,886				82,911
Selling, general, and administrative expenses				41,399				37,546				82,102				75,639
Gain on sales of property and equipment				641				52				964				149
Income from operations				23,477				10,301				35,748				7,421
Interest expense				(6,973	)			(7,178	)			(13,843	)			(14,385	)
Other income, net				151				185				508				508
Income (loss) before provision (benefit) for income taxes				16,655				3,308				22,413				(6,456	)
Provision (benefit) for income taxes				6,187				619				7,990				(2,672	)
Net income (loss)			$	10,468			$	2,689			$	14,423			$	(3,784	)
NET INCOME (LOSS) PER SHARE
Basic – Net income (loss) per share			$	0.30			$	0.08			$	0.41			$	(0.11	)
Basic – Weighted average number of common shares outstanding				34,838				34,725				34,822				34,713
Diluted – Net income (loss) per share			$	0.30			$	0.08			$	0.41			$	(0.11	)
Diluted – Weighted average number of common shares outstanding				34,964				34,906				34,957				34,713

H&E EQUIPMENT SERVICES, INC. SELECTED BALANCE SHEET DATA (unaudited) (Amounts in thousands)
			June 30,				December 31,
			2012				2011
Cash			$	3,692			$	24,215
Rental equipment, net				518,425				450,877
Total assets				859,140				753,305
Total debt (1)				323,790				268,660
Total liabilities				579,718				489,098
Stockholders’ equity				279,422				264,207
Total liabilities and stockholders’ equity			$	859,140			$	753,305

⁽¹⁾ Total debt consists of the aggregate amounts outstanding on the senior secured credit facility, senior unsecured notes and capital lease obligations.

H&E EQUIPMENT SERVICES, INC. UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands)
			Three Months Ended								Six Months Ended
			June 30,								June 30,
			2012				2011				2012				2011
Net income (loss)			$	10,468			$	2,689			$	14,423			$	(3,784	)
Interest expense				6,973				7,178				13,843				14,385
Provision (benefit) for income taxes				6,187				619				7,990				(2,672	)
Depreciation				28,079				24,622				54,115				48,317
Amortization of intangibles				25				123				50				247
EBITDA			$	51,732			$	35,231			$	90,421			$	56,493

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